Changes to the Job Support Scheme

The JSS applies to all nations of the UK. The changes announced to the JSS yesterday – now called the JSS Open – are:

• The minimum hours an employee is required to work is dropping from 33% to 20%. Accordingly, employees working one day a week will now qualify.
• Government will pay 61.67% of hours not worked up to a monthly cap per employee of £1,541.75.
• Employers will need to cover 5% of hours not worked up to a monthly cap of £125
• Employers will also need to cover all employer NIC and pension contributions.
• Employers can top up salary for employees if they choose.

Benefits for employees

• Employees who are laid off, but still work at least one day a week, will receive two-thirds of their pay for hours not worked – up to the monthly caps set out above.
• Employees receiving the JSS Open grant cannot be made redundant or placed on notice of redundancy if the employer is claiming the JSS Open for that employee.

Benefit for employers

• Under the original JSS scheme employers were faced with paying one-third of hours not worked. Under the JSS Open this is now reduced to just 5%.

A word of caution for employers

As with the wider JSS scheme, claims for November will be processed from 8 December onwards via an online portal. Subsequent months’ claims will thus be paid one month in arrears. Employers will need to accommodate the cash-flow consequences as wages will need to be paid before any JSS Open grants are received.

We as your payroll agent will be able to make the JSS claim for you or you can do so yourself.

The other Job Support Scheme (JSS Closed)

JSS Closed will provide support to businesses whose premises are legally required to close as a direct result of coronavirus restrictions, set by one of the four governments of the UK. This includes premises restricted to delivery or collection-only services from their premises, and those restricted to providing food and/or drinks outdoors.

• For JSS Closed, the UK government will fund 2/3rds of employees’ usual wages for time not worked, up to a maximum of £2,083.33 per month.
• Employers will not be required to contribute, but you can top up the government’s contribution if you choose to.
• Employers will still need to cover all employer National Insurance and pension contributions.

Employees will be able to check if their employer has made a Job Support Scheme claim on their behalf through their online Personal Tax Account. Employees can set up a Personal Tax Account on GOV‌‌‌‌.UK, by searching ‘Personal Tax Account: sign in or set up’.

Job Retention Bonus (JRB)

Employers will also be able to claim a one-off payment of £1,000 for every eligible employee you furloughed and claimed for through the Coronavirus Job Retention Scheme (CJRS), kept continuously employed until at least 31‌‌‌ ‌January 2021 and who meets the other eligibility criteria.

Employers do not have to pay this money to their employee.

We as agents will be able to claim this bonus between 15‌‌‌ ‌February and 31‌‌‌ ‌March, or you can do so yourself.

To do so, we/you must have submitted PAYE information for the period up to 5‌‌‌ ‌February 2021 on time.

Further guidance on the claim process will be published by HMRC by the end of January 2021 and we’ll keep you updated on this.